UPDATE: Bank of America Downgrades Abercrombie & Fitch Co. to Underperform, Lowers PT Following Analyst Day

In a report published Thursday, Bank of America analyst Paul Alexander downgraded the rating on

from Buy to Underperform, and lowered the price target from $48.00 to $30.00. In the report, Bank of America noted, “Abercrombie held an analyst day where we expected to hear about significant cost cutting and new efforts to revitalize the brand domestically. While the company did discuss initiatives concerning marketing and processes, in our view there was too little focus on addressing the faltering domestic popularity of the brand. Without a major overhaul, we expect ongoing market share loss and domestic weakness, which could also undermine the brand internationally. As a result, we are downgrading the stock to Underperform and lowering our F2014 and F2015 EPS estimates from $2.21 and $2.91 to $1.47 and $2.31, respectively. We are lowering our PO to $30.” Abercrombie & Fitch Co. closed on Wednesday at $33.13.